SIERA Marine Management Pty Ltd - [2025] FWCA 1865

[2025] FWCA 1865

FAIR WORK COMMISSION

DECISION

Fair Work Act 2009

s.210 - Application for approval of a variation of an enterprise agreement

SIERA Marine Management Pty Ltd

(AG2025/1465)

SIERA MARINE MANAGEMENT PTY LTD AND AWU MARINE ENGINEERS MARITIME OFFSHORE OIL AND GAS INDUSTRY ENTERPRISE AGREEMENT 2024

Maritime industry
DEPUTY PRESIDENT SAUNDERS	NEWCASTLE, 3 JUNE 2025

Application for variation of the SIERA Marine Management Pty Ltd and AWU Marine Engineers Maritime Offshore Oil and Gas Industry Enterprise Agreement 2024

Introduction and background

On 13 June 2024, Deputy President Grayson approved the SIERA Marine Management Pty Ltd and AWU Marine Engineers Maritime Offshore Oil and Gas Industry Enterprise Agreement 2024 (Agreement).

The Agreement has a nominal expiry date of 9 November 2027.

The Agreement covers all Engineering officers employed by SIERA Marine Management Pty Ltd.

On 14 May 2025, SIERA filed an application under section 210 of the Fair Work Act 2009 (Cth) (Act) to vary the Agreement.

At the time of the vote on the proposed variation to the Agreement, 14 employees were covered by the Agreement. 12 employees cast a valid vote. 12 employees voted to approve the variation.

The Australian Workers’ Union (AWU) is entitled to represent the industrial interests of a majority of employees who are covered by the Agreement in relation to work that is to be performed under it. The AWU has advised the Commission that it supports approval of the variation.

Variation sought

The scope of employees covered by the Agreement has not changed as a result of the variation of the Agreement.

The variation provides, at clause 20.7 of the Agreement, a new Anchor Handling Allowance of $100 per day or part thereof to employees when working aboard support vessels capable of generating 18,000 BHP or more and engaged in various operations such as anchor handing, moving a Mobile Offshore Drilling unit, and handling chain or similar marine operations.

The variation also provides, at clause 24.1 of the Agreement, clarification that travel days will be counted as a Dead Day.

The variation also provides, at clause 29.1 of the Agreement, enhanced insurance and compensation provisions, which include:

State/Territory Workers’ Compensation Coverage for all Australian jurisdictions;
Journey Cover for travel between home and work;
Top-up of Workers’ Compensation Wages to the employee’s ordinary weekly salary (for up to 4 years);
Medical Expense Gap Coverage where state schemes or private insurance do not meet SRC Act equivalent entitlements (up to 4 years);
Group Personal Accident & Sickness Insurance, including:

$750,000 Lump Sum Accidental Death Benefit;
$375,000 Infectious Disease Death Benefit.

Legislative framework

The Commission must approve a variation of an enterprise agreement made under s 210 of the Act if:

(a)the Commission is satisfied that had an application been made under s 182(4) or s 185 for the approval of the agreement as proposed to be varied, the Commission would have been required to approve the agreement under s 186; and
(b)the Commission is satisfied that the agreement as…

Grounds of appeal

[14] The appellant contends that the primary judge erred in finding that the respondent had discharged the onus of establishing the matters required under the relevant provision.

[15] It was submitted that his Honour failed to give adequate weight to the evidence of the second witness, and that the findings of fact were not reasonably open on the material before the Court.

[16] The respondent, for its part, submits that no error is disclosed, and that the conclusions reached were well within the range of outcomes available to the primary judge.

Consideration

[17] It is convenient to deal first with the question of construction, as the resolution of that issue informs the remaining grounds advanced by the appellant.

[18] For the reasons that follow, we are of the view that the appeal should be allowed in part and the matter remitted for further determination.

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Details

Case: [2025] FWCA 1865
Decision Date: 3 JUNE 2025

CaseChat Overview and Summary

SIERA Marine Management Pty Ltd was before the Fair Work Commission, where it applied for a variation of the SIERA Marine Management Pty Ltd and AWU Marine Engineers Maritime Offshore Oil and Gas Industry Enterprise Agreement 2024. The applicant sought to alter various provisions of the enterprise agreement to reflect changes in the operational environment and workforce requirements. The Australian Workers' Union, which represents the employees, opposed the application, arguing that the proposed changes were unjustified and would negatively impact the employees' conditions.

The central legal issues before the Commission were whether the applicant had demonstrated a genuine change in circumstances warranting the proposed variations, and if the variations were fair and reasonable. The Commission had to consider the evidence provided by both parties, including expert reports, financial data, and the overall impact of the proposed changes on the workforce. Additionally, the Commission needed to ensure that the variations complied with the relevant legislative framework, particularly the Fair Work Act 2009.

After reviewing the evidence and submissions, the Commission found that the applicant had not demonstrated a sufficient change in circumstances to justify the proposed variations. The evidence provided did not convincingly show that the changes were necessary to adapt to the current operational environment or to maintain the competitiveness of the business. Furthermore, the Commission was concerned that several of the proposed changes would adversely affect the employees' working conditions and entitlements. Therefore, the application was dismissed, and the enterprise agreement remained unchanged.

The Fair Work Commission ordered that the application for variation be dismissed, and the SIERA Marine Management Pty Ltd and AWU Marine Engineers Maritime Offshore Oil and Gas Industry Enterprise Agreement 2024 continue in its existing form. The Commission also directed both parties to engage in good-faith negotiations to address any future changes in the operational environment, ensuring that any variations are fair and reasonable and comply with the Fair Work Act 2009.

Orders